'R&D and export performance: exploring heterogeneity along the export intensity distribution'

This study analyses the relationship between frm-level innovative efort as measured by R&D expenditures and export intensity. We apply quantile regression techniques to a sample of Italian frms to verify whether R&D expenditures’ efect varies along the conditional distribution of export intensity, after controlling for censoring and endogeneity issues. Empirical fndings suggest that the efect of R&D expenditures on export intensity is positive and that frms taking most advantage from R&D activity are in the right tail of the export intensity distribution (from the 70th quantile onwards), that is, those exporting 50% of their sales or more. Overall, the results prove robust to several specifcation checks and suggest not only that frms’ innovative eforts help explaining heterogeneity in export intensity performance, but also that its positive efect difers across the export to sales ratio distribution. This implies that innovation policy measures might be more efective for frms characterised by a relatively high export intensive margin